DOJ, FMC Pledge Support for Shipping Act Enforcement
The Justice Department and the Federal Maritime Commission agreed to more closely cooperate on Shipping Act enforcement, the two agencies announced. DOJ will provide FMC with attorneys and economists from its Antitrust Division to help with enforcement, while FMC will provide the Antitrust Division “support and maritime industry expertise.” The announcement builds on the two agencies’ July memorandum of understanding to foster better cooperation on enforcement and oversight of competition issues in the ocean shipping industry (see 2107120055). “Lawbreakers should know that the Justice Department will provide the Federal Maritime Commission all necessary litigation support as it pursues its mission of promoting competition in ocean shipping,” Attorney General Merrick Garland said in a statement.
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The White House said the partnership will help ensure ocean freight companies, including global, foreign company alliances, can't take advantage of U.S. businesses and consumers. It also condemned carriers that contribute to port congestion, including those that decline export bookings in favor of imports. "All too often, ocean carriers are effectively refusing to take American exports altogether, preferring to speed back to China with an empty ship to make a quick turnaround rather than transport American exporters’ cargo or dock at American ports," the White House said, calling it "especially difficult to our farmers, who have spent decades building relationships internationally."
The White House called on Congress to pass "robust reforms" to the ocean shipping industry and provide the president "additional tools" to address problems in the industry. The House recently passed the Ocean Shipping Reform Act and a similar bill was introduced in the Senate (see 2202040009 and 2202030062).